Quickway Transp., Inc. v. NLRB

CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 11, 2024
Docket23-1820
StatusPublished

This text of Quickway Transp., Inc. v. NLRB (Quickway Transp., Inc. v. NLRB) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quickway Transp., Inc. v. NLRB, (6th Cir. 2024).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 24a0218p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ QUICKWAY TRANSPORTATION, INC., │ Petitioner/Cross-Respondent, │ │ v. > Nos. 23-1780/1820 │ │ NATIONAL LABOR RELATIONS BOARD, │ Respondent/Cross-Petitioner, │ │ │ GENERAL DRIVERS, WAREHOUSEMEN & HELPERS, │ LOCAL UNION NO. 89, │ Intervenor. │ ┘

On Petition for Review and Cross-Application for Enforcement of an Order of the National Labor Relations Board. Nos. 09-CA-251857; 09-CA-254584; 09-CA-255813; 09-CA-257750; 09-CA-257961; 09-CA-270326; 09-CA-272813.

Argued: July 24, 2024

Decided and Filed: September 11, 2024

Before: MOORE, MURPHY, and BLOOMEKATZ, Circuit Judges.

_________________

COUNSEL

ARGUED: R. Eddie Wayland, KING & BALLOW LAW OFFICES, Nashville, Tennessee, for Petitioner/Cross-Respondent. Joel A. Heller, NATIONAL LABOR RELATIONS BOARD, Washington, D.C., for Respondent/Cross-Petitioner. Pamela M. Newport, HERZFELD, SUETHOLZ, GASTEL LENISKI & WALL, PLLC, Cincinnati, Ohio, for Intervenor. ON BRIEF: R. Eddie Wayland, Michael D. Oesterle, Marykate E. Williams, KING & BALLOW LAW OFFICES, Nashville, Tennessee, for Petitioner/Cross-Respondent. Joel A. Heller, Elizabeth A. Heaney, Ruth E. Burdick, NATIONAL LABOR RELATIONS BOARD, Washington, D.C., for Respondent/Cross-Petitioner. Pamela M. Newport, HERZFELD, Nos. 23-1780/1820 Quickway Transp., Inc. v. NLRB Page 2

SUETHOLZ, GASTEL LENISKI & WALL, PLLC, Cincinnati, Ohio, Michael J. Wall, HARZFELD, SUETHOLZ, GASTEL LENISKI & WALL, PLLC, Nashville, Tennessee, Maneesh Sharma, AFL-CIO, Washington, D.C., for Intervenor.

MOORE, J., delivered the opinion of the court in which BLOOMEKATZ, J., concurred. MURPHY, J. (pp. 35–43), delivered a separate opinion concurring in the judgment.

OPINION _________________

KAREN NELSON MOORE, Circuit Judge. Quickway Transportation, Inc. (“Quickway”) petitions this court for review of a National Labor Relations Board (“Board”) order in an unfair labor practice proceeding against Quickway. The Board brings a cross- application for enforcement of its order. Quickway argues that substantial evidence does not support the Board’s findings that (1) Quickway’s cessation of operations at its Louisville terminal violated the National Labor Relations Act (“NLRA” or “Act”); (2) Quickway failed to bargain over the cessation of operations and the resulting effects in violation of the Act; and (3) Quickway threatened and interrogated its employees in violation of the Act. Quickway further argues that the Board’s remedial order imposes an undue burden on it and exceeds the Board’s statutory authority. For the following reasons, we DENY Quickway’s petition for review and GRANT the Board’s cross-application for enforcement of its order in full.

I. BACKGROUND

A. Statutory Framework

Section 7 of the NLRA guarantees the right of employees “to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.” 29 U.S.C. § 157. To effectuate the protection of these rights, Section 8(a)(1) of the Act makes it an unfair labor practice for an employer “to interfere with, restrain, or coerce employees in the exercise of” Section 7 rights. Id. § 158(a)(1). Section 8(a)(3) makes it an unfair labor practice for an employer to “discriminat[e] in regard to hire or Nos. 23-1780/1820 Quickway Transp., Inc. v. NLRB Page 3

tenure of employment or any term or condition of employment to . . . discourage membership in any labor organization,” and Section 8(a)(4) makes it an unfair labor practice to retaliate against an employee for filing a charge with the Board. Id. § 158(a)(3), (4). Section 8(a)(5) makes it an unfair labor practice for an employer “to refuse to bargain collectively with the representatives of his employees.” Id. § 158(a)(5). “[T]o bargain collectively is the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment.” Id. § 158(d).

B. Factual Background

1. Quickway’s Operations

Quickway is a commercial motor carrier affiliated with Paladin Capital, Inc. (“Paladin”) and Paladin’s Quickway Group (“Quickway Group”). Joint App’x at 2 (Board Dec. at 2). The Quickway Group operates seventeen trucking terminals throughout the country, thirteen of which belong to Quickway. Nine of the Quickway Group’s terminals exclusively serve The Kroger Company. Id.

In 2014, Quickway entered a contract to service the Kroger Distribution Center (KDC) in Louisville, Kentucky. Id. Under this KDC agreement, Quickway drivers at its Louisville terminal delivered outbound bulk grocery items from the KDC to Kroger grocery stores and provided limited inbound delivery services to the KDC. Id. at 633 (Hr’g Tr. at 996) (McCurry Direct). Quickway’s service of the KDC constituted 96.5% of Quickway’s Louisville terminal’s annual revenue. Id. at 1000 (Hr’g Tr. at 1645) (Cannon Direct). The terminal generated around $900,000 to $1 million in annual profits. Id. at 806 (Hr’g Tr. at 1297) (Prevost Direct).

The Louisville terminal employed approximately 62 drivers and included a main terminal in Louisville and two satellite locations in Versailles and Franklin, Kentucky. Id. at 1001 (Hr’g Tr. at 1648) (Cannon Direct). In addition to the three locations that made up the Louisville terminal, some Louisville drivers were temporarily assigned to work at other Quickway terminals, including in Hebron, Kentucky. Id. at 301–02 (Hr’g Tr. at 294–95) (Cannon Direct). Quickway drivers from other terminals—including from Murfreesboro, Tennessee and Nos. 23-1780/1820 Quickway Transp., Inc. v. NLRB Page 4

Indianapolis, Indiana—were also assigned routes that brought them to the KDC. Id. at 299 (Hr’g Tr. at 292) (Cannon Direct).

Quickway was the secondary carrier at the KDC. Id. at 374 (Hr’g Tr. at 424) (Obermeier Cross).1 The KDC’s primary carrier was Transervice, id., and a third company, Zenith Logistics, operated the warehouse, id. at 376 (Hr’g Tr. at 426) (Obermeier Cross). The Transervice and Zenith Logistics employees at the KDC were represented by the General Drivers, Warehousemen & Helpers, Local Union No. 89 (“Local 89” or “Union”). Id. at 2 (Board Dec. at 2).

2. Union Organizing

In June 2019, drivers at Quickway’s Louisville terminal began to organize with Local 89. Joint App’x at 229 (Hr’g Tr. at 161) (Trafford Direct).2 At the time, drivers at four of Quickway’s other terminals were represented by separate Teamsters’ local unions. See id. at 2 (Board Dec. at 2 n.7). During the same period, drivers at Quickway’s Indianapolis terminal were organizing with Teamster’s Local 135; the Indianapolis union campaign ended when Indianapolis drivers voted against unionization in fall 2019. Id. at 6 (Board Dec. at 6 n.21).

In July 2019, Kerry Evola, Quickway’s Louisville Operations Manager, informed Chris Higgins, Quickway’s Terminal Manager, that Louisville employees had approached him about the Union. Id. at 2 (Board Dec. at 2). That same month, Evola told pro-union Quickway drivers that “[i]f this place goes union, Bill Prevost will shut it down. He’s not going to have another terminal go to the union.” Id. at 237 (Hr’g Tr. at 177) (Tooley Direct). Bill Prevost was the Chairman of Paladin’s Board of Directors and CEO of both Paladin and Quickway. Id. at 2 (Board Dec.

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Bluebook (online)
Quickway Transp., Inc. v. NLRB, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quickway-transp-inc-v-nlrb-ca6-2024.